There is a supply side issue and we are fixing it with a demand side solution...

This would be my first home purchase, and I would move into one of the units after purchasing.I don't see a reason why the 5% Fannie Mae loan would have issues with our LLC, but please correct me if I'm wrong. 

@Yang Zheng this is one of those issues that is rarely covered in the management contract.Landlords complain about how long our contract is all the time, but we cover issues like utilities and resulting damages. 

There may also be some title issues that may vary from state to state.

Stay away from foundation issues, knocking out walls, floor leveling, rewiring, etc.  

@Larry Landry most landlord leases state that appliances are as-is & where-is, so they don't have to repair them or remove & store them.Of course, for a great tenant, or to negotiate a lease renewal, you can also volunteer to address a repair issue:)Instead of spending the money upfront and finding out the W/D doesn't make a difference, just put in your ad, "W/D negotiable dependent on tenant qualifications and lease length".

I'm trying to think creatively (such as a land contract for a period of time) and coming up short on how to make a good deal happen.It’s unfortunately a real issue in Michigan.

I confirmed with the city over a few meetings, so that part is sorted out.I know ADUs cause issues with appraisal since there are not many properties to comp with, that have ADUs.

If my math is correct.My issue is that I often read that BP community many times finds it better to keep low equity in investment properties to keep cash free to purchase additional rental properties.What are my biggest considerations when making a decision here? 

This is my brokers response when I asked about it: "I’m not sure why now converted dwellings (buildings that original use was for residential and then converted to commercial use) are an issue with some of the carriers."